THE accolade of worst performer on the Hong Kong stock market in 1995 goes to Hanny Magnetics. The cassette and floppy-disk manufacturer continued to suffer from squeezed profit margins and a strain on capital liquidity. The company's stock was trading at 7.5 cents, representing a 93.2 per cent plunge from $1.09 at the end of last year. The company's loss for the six months to September 30 this year widened to $294.59 million from $137.76 million for the same period last year. When compared to the Hang Seng Index, the share under-performed by 94.94 per cent. The company said the loss was caused by serious liquidity problems and heavy investment in its Zhuhai factory in China. Adding to Hanny's woes were allegations of insider trading and illegally trying to avoid European Union anti-dumping measures. In an attempt to enlarge share capital, the company announced the issue of three billion shares in September this year but encountered poor response from minority shareholders, with only 28 per cent of the new shares subscribed. Former chairman Wong Sun was found to have been selling his shares instead of buying the new shares in the rights issue. Tightened anti-dumping measures by the EU also posed additional uncertainty for floppy-disk manufacturers in Asia. The EU accused 24 Hong Kong companies, including Hanny Magnetics (Holdings), of transshipping computer disks from China and Taiwan to Hong Kong and eight countries to escape EU tariffs on mainland and Taiwanese imports.